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D2C: Pricing is the only thing that matters

Since the global pandemic in 2020, the D2C business model has grown in favor of Indian markets, particularly among new age start-ups. Since D2C brands are developing at a 40% CAGR, it is customary for them to rely only on pricing to attract clients and topple competitors. Although pricing is important for any company which is thriving to grow, it can not solely decide any company's success. Aside from price, there are several other important elements to consider while focusing on consumer value.


To attract clients, a company may sell its product at a highly low price, but the product's quality and quantity should never be sacrificed. Customers would always prefer quality over quantity. To stay ahead of the competition and attract clients, a D2C company must also constantly develop and introduce new items. Even if companies establish high/low prices for their items in order to get clients, the products will only reach the customers if they have the ability to advertise and sell their products well.  As D2C businesses deal directly with customers, they must provide a positive user experience because it is directly tied to customer conversion and retention. A company should also build a strong brand and customer loyalty. These characteristics, along with word of mouth, play a significant part in deciding the success of the product. 


A company can create a product with higher quality, quantity, greater innovation, a lower price, and so on, but it must constantly find a method to match customer demand and satisfaction by learning and enhancing what the target market requires and remaining ahead of the competition. Pricing should not be the sole consideration for a D2C company. It may work with customers for a short time, but in order to develop a loyal customer base rather than a one-time sale, the pricing should be one of the aspects that influences and determines the company's performance.


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